Benzinga | Nov 9, 2021 11:44AM EST

Cardinal Health Post Mixed Q1 Earnings; Reaffirms FY22 Adjusted EPS Outlook

* Cardinal Health (NYSE:CAH) reported Q1 FY22 adjusted EPS of $1.29, down from $1.51 a year ago, missing the Street estimate of $1.33.

* Q1 sales increased 13% Y/Y to $44 billion, beating the consensus estimate of $41.93 billion.

* The pharmaceutical segment increased 13% to $39.8 billion, driven primarily by branded pharmaceutical sales growth from large Pharmaceutical Distribution and Specialty customers.

* The medical segment sales increased 5% to $4.1 billion, driven primarily by PPE sales, partially offset by the divestiture of the Cordis business.

* Outlook: For FY22, Cardinal Health reaffirmed its adjusted earnings guidance of $5.60 - $5.90.

* This guidance includes an update to the Medical segment profit outlook to mid-single to low-double-digit percentage decline, from low-double-digit percentage growth.

* The guidance also reflects net incremental elevated supply chain costs of approximately $100 million - $125 million.

* Cardinal Health also announced a 3-year authorization to repurchase up to an additional $3 billion shares.

* Price Action: CAH shares are up 1.23% at $50.24 during the premarket session on the last check Tuesday.